Business Fundamentals for Analytics: Supply Chain Management

Vocabulary and strategic concepts covering the fundamentals of Operations and Supply Chain Management based on lecture materials by Bob Myers.

Operations and Supply Chain Management (OSCM)

The focus on how to develop capabilities (such as features, costs, quality, time to market, and innovation) to design, produce, and deliver products and services in a competitive market.

Six Primary Processes

The framework developed by the Supply Chain Council which includes Plan, Source, Make, Deliver, Return, and Engage.

Supply Chain Strategy

Long-term and competitive decisions involving network configuration, outsourcing, and vertical integration.

Supply Chain Operations Planning

Medium to short-term tactical decisions including Lean practices, Sales and Operations Planning (S&OP), and inventory management.

Supply Chain Execution

Short-term or real-time operational decisions involving scheduling, people, equipment, and product movement.

Efficient Supply Chain (Cost Focus)

A supply chain operating model focused on cost reduction, asset utilization, efficiency, productivity, and yield capacity utilization.

Responsive Supply Chain (Speed Focus)

A supply chain operating model focused on responding speedily to changes in customer delivery requirements, typically regarding volume and lead time.

Functional Products

Products characterized by low demand uncertainty, predictable/stable demand, long product life, low profit margins, and high volume.

Innovative Products

Products characterized by high demand uncertainty, difficult-to-forecast demand, short product life, high profit margins, and high product variety.

Centralized Distribution

A network configuration that typically results in lower total inventory, increased shipment volumes, and lower complexity, but leads to increased shipping distances and times.

Decentralized Distribution

A network configuration that results in decreased shipping distances and times and higher responsiveness, but leads to higher total inventory and increased complexity.

Outsourcing

The obtaining of any resource or process external to the company.

Offshoring

The obtaining of any resource or process external to the company and across the ocean.

Captive Offshore

A strategy where a company offshores a resource or process to its own entities in a different country.

Nearshoring

The practice of transferring a business operation to a nearby country rather than a more distant one.

Re-shoring

The process of bringing business operations that were moved overseas back to the country from which they were originally relocated.

Free On Board (FOB) Cost

An offshore cost element representing the value of goods at the time they are placed on board a transport vessel.